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Homework: Chapter 11 - Homework Save Score: 0 of 1 pt 2 of 5 (1 complete) HW Score: 1.74%, 0.09 of 5 pts E11-30 (similar
Homework: Chapter 11 - Homework Save Score: 0 of 1 pt 2 of 5 (1 complete) HW Score: 1.74%, 0.09 of 5 pts E11-30 (similar to) 3 Question Help (Click the icon to view the add-or-drop segments information.) Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2017 is as follows: (Click to view the operating income for the stores.) Read the requirements. Requirement 1. By closing down the Rhode Island store, Sanchez can reduce overall corporate overhead costs by $43,000. Calculate Sanchez's operating income if it closes the Rhode Island store. Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. Begin by calculating Sanchez's operating income if it closes the Rhode Island store. (Complete all answer boxes. Enter losses in revenues as a negative amount. Enter a "0" if the cost is not relevant. If the net effect is an operating loss enter the amount with parentheses or a minus sign.) (Loss in Revenues) Savings in Costs Revenues Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) Corporate overhead Enter any number in the edit fields and then click Check Answer. * Requirements 1. By closing down the Rhode Island store, Sanchez can reduce overall corporate overhead costs by $43,000. Calculate Sanchez's operating income if it closes the Rhode Island store. Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. 2. Calculate Sanchez's operating income if it keeps the Rhode Island store open and opens another store with revenues and costs identical to the Rhode Island store (including a cost of $21,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $4,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. Print Done i Data Table Connecticut Store Rhode Island Store $ 1,100,000 $ 820,000 Revenues 800,000 88,000 Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) Allocated corporate overhead Total operating costs 48,000 24,000 44,000 49,000 620,000 78,000 42,000 21,000 46,000 39,000 846,000 1,053,000 47,000 $ (26,000) Operating income (loss) Print Print Done Done Homework: Chapter 11 - Homework Save Score: 0 of 1 pt 2 of 5 (1 complete) HW Score: 1.74%, 0.09 of 5 pts E11-30 (similar to) 3 Question Help (Click the icon to view the add-or-drop segments information.) Sanchez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island. Operating income for each store in 2017 is as follows: (Click to view the operating income for the stores.) Read the requirements. Requirement 1. By closing down the Rhode Island store, Sanchez can reduce overall corporate overhead costs by $43,000. Calculate Sanchez's operating income if it closes the Rhode Island store. Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. Begin by calculating Sanchez's operating income if it closes the Rhode Island store. (Complete all answer boxes. Enter losses in revenues as a negative amount. Enter a "0" if the cost is not relevant. If the net effect is an operating loss enter the amount with parentheses or a minus sign.) (Loss in Revenues) Savings in Costs Revenues Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) Corporate overhead Enter any number in the edit fields and then click Check Answer. * Requirements 1. By closing down the Rhode Island store, Sanchez can reduce overall corporate overhead costs by $43,000. Calculate Sanchez's operating income if it closes the Rhode Island store. Is Maria Lopez's statement about the effect of closing the Rhode Island store correct? Explain. 2. Calculate Sanchez's operating income if it keeps the Rhode Island store open and opens another store with revenues and costs identical to the Rhode Island store (including a cost of $21,000 to acquire equipment with a one-year useful life and zero disposal value). Opening this store will increase corporate overhead costs by $4,000. Is Maria Lopez's statement about the effect of adding another store like the Rhode Island store correct? Explain. Print Done i Data Table Connecticut Store Rhode Island Store $ 1,100,000 $ 820,000 Revenues 800,000 88,000 Operating costs Cost of goods sold Lease rent (renewable each year) Labor costs (paid on an hourly basis) Depreciation of equipment Utilities (electricity, heating) Allocated corporate overhead Total operating costs 48,000 24,000 44,000 49,000 620,000 78,000 42,000 21,000 46,000 39,000 846,000 1,053,000 47,000 $ (26,000) Operating income (loss) Print Print Done Done
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